Coolalinga & Districts Community Finance Limited
ANNUALREPORT2013
Coolalinga & Districts Community Bank®Branch
ABN 24 117 500 455
Annual report Coolalinga & Districts Community Finance Limited 1
Contents
Chairman’s report 2
Manager’s report 3
Directors’ report 4
Auditor’s independence declaration 9
Financial statements 10
Notes to the financial statements 14
Directors’ declaration 33
Independent audit report 34
Annual report Coolalinga & Districts Community Finance Limited2
For year ending 30 June 2013
I am very pleased to report that we have successfully again increased our business during this financial year. This
continued success can only be achieved with the support of our shareholders, our community and our branch staff
with the benefits, of course, going back to our community by way of sponsorships.
During 2012, a total of $35,240 was distributed to local community groups and I am pleased to report that
the sponsorship pipeline for assisting community groups in the next financial year is already exceeding our
expectations. This year we have supported the following:
Dundee Progress Association $100 Adelaide River Picnic Races $5,000
Rosebery Primary School $300 Humpty Doo Childcare $7,000
Motocross $1,000 Variety Club $250
Palmerston Polocross $200 Humpty Doo Golf Club $5,000
Friends of Taminmin Library $500 NT Scouts $2,000
Love your Sister Campaign $2,000 Humpty Doo Fire Brigade $1,364
Litchfield Orchid Club $1,500 Koolpinyah Christmas Run $1,500
St John Ambulance $1,000 Humpty Doo Golf Club $166
Adelaide River Show Society $5,000 Noonamah Crocs Netball $745
Humpty Doo Golf Club $515 Rosebery Dux Awards $100
Again, I urge all sporting and community groups to consider our branch assisting you with funding. It is a simple
process and applications are assessed fairly quickly. Call into the branch and discuss your plans with Lucia, our
Branch Manager, or alternatively you can contact me on 0457 882 604.
Thanks to our dedicated staff throughout the year who have continued to work professionally and assist our
customers and shareholders with their enquiries and banking business. Our thoughts are with Lynne Nicholson,
our inaugural Senior Teller, who has suffered an unwelcome illness and been unable to work this past year. We are
thinking of you Lynne and wish you well.
In closing, I would like to thank all our Board members for their continued support over this past year. All have
worked hard on many projects and have been extremely community minded – and that’s what it’s all about!
Jan Young
Chairman
Chairman’s report
Annual report Coolalinga & Districts Community Finance Limited 3
For year ending 30 June 2013
Coolalinga & Districts Community Bank® Branch has once again seen strong business growth for this financial
year. Northern Territory has seen a change of government and increased economic growth and our Community
Bank® model has proven to be successful. Our local community now understands the benefits that arise by the
partnership they have with our branch.
We have continued injecting our profits into our community which has helped many organisations with their
completion of projects. Acacia Hills Bushfire Brigade has been able to complete their Community Hall which is now
being utilised for many community orientated activities that has assisted their community become closer. This is
just one example of how our support assists our community.
It is important to acknowledge the hard work my team have contributed to the success of the branch. They are a
dedicated group who are eager to assist with any banking enquiries.
I would also like to acknowledge the hard work and consistent efforts the Board, our customers and shareholders
have contributed as without your support our branch would not have achieved such great success.
I am looking forward to the year ahead in which I am confident we will reach our goals to be able to provide the
continued support to all of our community members.
Until next time.
Kind regards,
Lucia English
Branch Manager
Manager’s report
Annual report Coolalinga & Districts Community Finance Limited4
For the financial year ended 30 June 2013
Your directors submit the financial statements of the company for the financial year ended 30 June 2013.
Directors
The names and details of the company’s directors who held office during or since the end of the financial year:
Janice Susan Young
Chairman
Wharf Precinct Manager
Extensive experience in marketing/public relations
and property management. President of SKAL
International Darwin Branch. Life member of Tourism
Top End and Amateur Fishermens Association NT.
Member of all Board Committees
Interests in shares: 7,201
Leanne Dix
Director
Administration Officer
Managers administration for a drilling company.
Extensive experience in administrative roles
including finance and secretarial duties.
Company Secretary
Interests in shares: Nil
Karen Lee Relph
Director
Administration Manager
Skills in public relations, marketing and event
management with over 28 years experience with a
Diploma in Business.
Governance/Audit, Marketing & HR
Interests in shares: 1,101
Stuart Dean Hand
Director
Transit Officer - NTG
Freds Pass Reserve Board of management Chairman
and Freds Pass Show Chairman.
Building Committee
Interests in shares: Nil
Deane Henry Walkley
Director
Electrical Contractor
Company Director for three Pty Ltd Companies.
Associate Diploma in Electrical Engineering.
Extensive experience in Malaysia and Australian
business practices.
Interests in shares: 500
Rodney Edmond Nelson
Director
Retired
Federal and State public service, Board and
Committee member of community organisations.
Governance Committee
Interests in shares: Nil
Robert Hew Macleod
Director (Appointed 5 September 2012)
Quality & Compliance Manager
Bachelor of Commerce, Associate Diploma in
Material Management. Quality & Compliance
Manager with Hardy Aviation.
Interests in shares: 20,000
Keely Ann Quinn
Director (Appointed 5 September 2012)
Youth Programs/Event Organiser
Not for profit groups event co-ordinator focusing on
science engagement. 4 years with National Science
week committee. Bachelor of Business with a major
marketing.
Interests in shares: 1,000
Directors were in office for this entire year unless otherwise stated.
Directors’ report
Annual report Coolalinga & Districts Community Finance Limited 5
Company Secretary
The company secretary is Leanne Dix. Leanne has a background in the financial field and also has previous legal
secretarial background in commercial, family and litigation law. She has worked in several departments within
the Local Government including acting as Secretary for the CEO and is also the Treasurer of Dundee Progress
Association and member of Sub Committee for DPA. Leanne an Administration Officer and is also currently
studying towards a Certificate 1V in Bookkeeping through Open Colleges.
Principal Activities
The principal activities of the company during the course of the financial year were in facilitating Community Bank®
services under management rights to operate a franchised branch of Bendigo and Adelaide Bank Limited.
There have been no significant changes in the nature of these activities during the year.
Operating Results
Operations have continued to perform in line with expectations. The profit of the company for the financial year
after provision for income tax was:
Year ended 30 June 2013
$
Year ended 30 June 2012
$
74,653 168,985
Remuneration Report
Directors’ Remuneration
At the Company’s Annual General Meeting held on the 9th of November 2009 a resolution was passed giving
approval for Director’s Fees to be paid to Directors. It was agreed that an amount of $2,500 (Executive positions)
and $1,800 (Non-Executive positions) per year be made available for the Director’s Fees.
For the year ended 30 June 2013, the directors received total remuneration including superannuation, as follows:
$
Janice Susan Young 2,500
Leanne Dix 2,500
Karen Lee Relph 2,500
Stuart Dean Hand 1,350
Deane Henry Walkley 1,320
Rodney Edmond Nelson 750
Robert Hew Macleod (Appointed 5 September 2012) 300
Keely Ann Quinn (Appointed 5 September 2012) 300
Fees and payments to non executive directors reflect the demands which are made on and the responsibilities of
the directors. Directors must remain a member for more than twelve months to receive remuneration.
Directors’ report (continued)
Annual report Coolalinga & Districts Community Finance Limited6
Dividends
Year Ended 30 June 2013
Cents $
Dividends paid in the year: 8 60,001
Significant Changes in the State of Affairs
In the opinion of the directors there were no significant changes in the state of affairs of the company that
occurred during the financial year under review not otherwise disclosed in this report or the financial statements.
Matters Subsequent to the End of the Financial Year
There are no matters or circumstances that have arisen since the end of the financial year that have significantly
affected or may significantly affect the operations of the company, the results of those operations or the state of
affairs of the company, in future years.
Likely Developments
The company will continue its policy of facilitating banking services to the community.
Environmental Regulation
The company is not subject to any significant environmental regulation.
Directors’ Benefits
No director has received or become entitled to receive, during or since the financial year, a benefit because of a
contract made by the company, controlled entity or related body corporate with a director, a firm which a director is
a member or an entity in which a director has a substantial financial interest except as disclosed in note 20 to the
financial statements. This statement excludes a benefit included in the aggregate amount of emoluments received
or due and receivable by directors shown in the company’s accounts, or the fixed salary of a full-time employee of
the company, controlled entity or related body corporate.
Indemnification and Insurance of Directors and Officers
The company has indemnified all directors and the manager in respect of liabilities to other persons (other than
the company or related body corporate) that may arise from their position as directors or manager of the company
except where the liability arises out of conduct involving the lack of good faith.
Disclosure of the nature of the liability and the amount of the premium is prohibited by the confidentiality clause of
the contract of insurance. The company has not provided any insurance for an auditor of the company or a related
body corporate.
Directors’ report (continued)
Annual report Coolalinga & Districts Community Finance Limited 7
Directors’ Meetings
The number of directors’ meetings attended by each of the directors of the company during the year were:
Board Meetings
AttendedGovernance Attended
Marketing Attended
Eligible Attended Eligible Attended Eligible Attended
Janice Susan Young 10 10 1 1 2 2
Leanne Dix 10 8 - - 2 1
Karen Lee Relph 10 8 1 1 2 2
Stuart Dean Hand 10 6 - - - -
Deane Henry Walkley 10 10 - - 2 2
Rodney Edmond Nelson 10 9 1 1 - -
Robert Hew Macleod (Appointed 5 September 2012) 9 8 - - - -
Keely Ann Quinn (Appointed 5 September 2012) 9 9 1 1 2 2
The Board has a sub-committee for Human Resources. The sub-committee met on an as needed basis during the
financial year and report to the Board meetings as required.
Non Audit Services
The company may decide to employ the auditor on assignments additional to their statutory duties where the
auditor’s expertise and experience with the company are important. Details of the amounts paid or payable to the
auditor (Andrew Frewin & Stewart) for audit and non audit services provided during the year are set out in the notes
to the accounts.
The board of directors has considered the position, in accordance with the advice received from the audit
committee and is satisfied that the provision of the non-audit services is compatible with the general standard of
independence for auditors imposed by the Corporations Act 2001.
The directors are satisfied that the provision of non-audit services by the auditor, as set out in the notes did not
compromise the auditor independence requirements of the Corporations Act 2001 for the following reasons:
• allnon-auditserviceshavebeenreviewedbytheauditcommitteetoensuretheydonotimpactonthe
impartiality and objectivity of the auditor;
• noneoftheservicesunderminethegeneralprinciplesrelatingtoauditorindependenceassetoutinAPES110
Code of Ethics for Professional Accountants, including reviewing or auditing the auditor’s own work, acting in
a management or a decision-making capacity for the company, acting as advocate for the company or jointly
sharing economic risk and rewards.
Directors’ report (continued)
Annual report Coolalinga & Districts Community Finance Limited8
Auditors’ Independence Declaration
A copy of the auditors’ independence declaration as required under section 307C of the Corporations Act 2001 is
set out on page 9.
Signed in accordance with a resolution of the board of directors at Coolalinga, Northern Territory on
30 September 2013.
Leanne Dix,
Secretary
Directors’ report (continued)
Annual report Coolalinga & Districts Community Finance Limited 9
Auditor’s independence declaration
Annual report Coolalinga & Districts Community Finance Limited10
The accompanying notes form part of these financial statements.
Statement of Comprehensive Income for the Year Ended 30 June 2013
Note 2013 2012 $ $
Revenues from ordinary activities 4 1,033,741 982,575
Employee benefits expense (408,727) (400,985)
Charitable donations, sponsorship, advertising and promotion (240,738) (65,455)
Occupancy and associated costs (66,704) (59,650)
Systems costs (25,567) (29,474)
Depreciation and amortisation expense 5 (31,292) (27,019)
Finance costs 5 (1,168) (1,181)
General administration expenses (152,899) (158,631)
Profit before income tax expense 106,646 240,180
Income tax expense 6 (31,993) (71,195)
Profit after income tax expense 74,653 168,985
Total comprehensive income for the year 74,653 168,985
Earnings per share (cents per share) c c
- basic for profit for the year 22 9.3 21.12
Financial statements
Annual report Coolalinga & Districts Community Finance Limited 11
Balance Sheet as at 30 June 2013
Note 2013 2012 $ $
ASSETS
Current Assets
Cash and cash equivalents 7 362,572 387,785
Trade and other receivables 8 87,269 77,381
Current tax asset 11 34,526 -
Total Current Assets 484,367 465,166
Non-Current Assets
Property, plant and equipment 9 176,558 186,346
Intangible assets 10 45,059 58,924
Deferred tax assets 11 10,355 30,305
Total Non-Current Assets 231,972 275,575
Total Assets 716,339 740,741
LIABILITIES
Current Liabilities
Trade and other payables 12 12,997 28,430
Borrowings 13 8,493 9,923
Provisions 14 19,940 15,888
Total Current Liabilities 41,430 54,241
Non-Current Liabilities
Borrowings 13 5,205 13,693
Provisions 14 14,376 32,131
Total Non-Current Liabilities 19,581 45,824
Total Liabilities 61,011 100,065
Net Assets 655,328 640,676
Equity
Issued capital 15 765,550 765,550
Accumulated losses 16 (110,222) (124,874)
Total Equity 655,328 640,676
Financial statements (continued)
The accompanying notes form part of these financial statements.
Annual report Coolalinga & Districts Community Finance Limited12
Statement of Changes in Equity for the Year Ended 30 June 2013
Issued Accumulated Total Capital Losses Equity $ $ $
Balance at 1 July 2011 765,550 (253,859) 511,691
Total comprehensive income for the year - 168,985 168,985
Transactions with owners in their capacity as owners:
Shares issued during period - - -
Costs of issuing shares - - -
Dividends provided for or paid - (40,000) (40,000)
Balance at 30 June 2012 765,550 (124,874) 640,676
Balance at 1 July 2012 765,550 (124,874) 511,691
Total comprehensive income for the year - 74,653 74,653
Transactions with owners in their capacity as owners:
Shares issued during period - - -
Costs of issuing shares - - -
Dividends provided for or paid - (60,001) (60,001)
Balance at 30 June 2013 765,550 (110,222) 526,343
Financial statements (continued)
The accompanying notes form part of these financial statements.
Annual report Coolalinga & Districts Community Finance Limited 13
Statement of Cashflows for the Year Ended 30 June 2013
Note 2013 2012 $ $
Cash Flows From Operating Activities
Receipts from customers 1,054,252 1,058,805
Payments to suppliers and employees (970,454) (790,615)
Interest received 16,284 9,640
Interest paid (1,168) (1,181)
Income taxes paid (46,569) -
Net cash provided by operating activities 17 52,345 276,649
Cash Flows From Investing Activities
Payments for property, plant and equipment (7,639) (29,804)
Payments for intangible assets - (69,322)
Net cash used in investing activities (7,639) (99,126)
Cash Flows From Financing Activities
Proceeds from borrowings - 14,598
Repayment of borrowings (9,918) -
Dividends paid (60,001) (40,000)
Net cash used in financing activities (69,919) (25,402)
Net increase/(decrease) in cash held (25,213) 152,121
Cash and cash equivalents at the beginning of the financial year 387,785 235,664
Cash and cash equivalents at the end of the financial year 7(a) 362,572 387,785
Financial statements (continued)
The accompanying notes form part of these financial statements.
Annual report Coolalinga & Districts Community Finance Limited14
For year ended 30 June 2013
Note 1. Summary of Significant Accounting Policies
a) Basis of Preparation
These general purpose financial statements have been prepared in accordance with Australian Accounting
Standards and Interpretations issued by the Australian Accounting Standard Boards and the Corporations Act
2001. The company is a for-profit entity for the purpose of preparing the financial statements.
Compliance with IFRS
These financial statements and notes comply with International Financial Reporting Standards (IFRS) as issued by
the International Accounting Standards Board (IASB).
Critical accounting estimates
The preparation of the financial statements requires the use of certain critical accounting estimates. It also
requires management to exercise its judgement in the process of applying the company’s accounting policies.
These areas involving a higher degree of judgement or complexities, or areas where assumptions and estimates
are significant to the financial statements are disclosed in note 3.
Historical cost convention
The financial statements have been prepared under the historical cost convention on an accruals basis as
modified by the revaluation of financial assets and liabilities at fair value through profit or loss and where stated,
current valuations of non-current assets. Cost is based on the fair values of the consideration given in exchange
for assets.
Comparative figures
Where required by Australian Accounting Standards comparative figures have been adjusted to conform with
changes in presentation for the current financial year.
Adoption of new and revised Accounting Standards
None of the new standards and amendments to standards that are mandatory for the first time for the financial
year beginning 1 July 2012 affected any of the amounts recognised in the current period or any prior period and
are not likely to affect future periods. Amendments made to AASB 101 Presentation of Financial Statements
effective 1 July 2012 now require the statement of comprehensive income to show the items of comprehensive
income grouped into those that are not permitted to be reclassified to profit or loss in a future period and those
that may have to be reclassified if certain conditions are met. This amendment has not affected the presentation
of the statement of comprehensive income of the company in the current period and is not likely to affect future
periods.
The company has not elected to apply any pronouncements before their mandatory operative date in the annual
reporting period beginning 1 July 2012.
Notes to the financial statements
Annual report Coolalinga & Districts Community Finance Limited 15
Note 1. Summary of Significant Accounting Policies (continued)
a) Basis of Preparation (continued)
Economic dependency - Bendigo and Adelaide Bank Limited
The company has entered into a franchise agreement with Bendigo and Adelaide Bank Limited that governs the
management of the Community Bank® branch at Coolalinga, Northern Territory.
The branch operates as a franchise of Bendigo and Adelaide Bank Limited, using the name “Bendigo Bank” and
the logo and system of operations of Bendigo and Adelaide Bank Limited. The company manages the Community
Bank® branch on behalf of Bendigo and Adelaide Bank Limited, however all transactions with customers conducted
through the Community Bank® branch are effectively conducted between the customers and Bendigo and Adelaide
Bank Limited.
All deposits are made with Bendigo and Adelaide Bank Limited, and all personal and investment products are
products of Bendigo and Adelaide Bank Limited, with the company facilitating the provision of those products. All
loans, leases or hire purchase transactions, issues of new credit or debit cards, temporary or bridging finance and
any other transaction that involves creating a new debt, or increasing or changing the terms of an existing debt
owed to Bendigo and Adelaide Bank Limited, must be approved by Bendigo and Adelaide Bank Limited. All credit
transactions are made with Bendigo and Adelaide Bank Limited, and all credit products are products of Bendigo
and Adelaide Bank Limited.
Bendigo and Adelaide Bank Limited provides significant assistance in establishing and maintaining the Community
Bank® branch franchise operations. It also continues to provide ongoing management and operational support,
and other assistance and guidance in relation to all aspects of the franchise operation, including advice in
relation to:
•adviceandassistanceinrelationtothedesign,layoutandfitoutoftheCommunity Bank® branch;
•trainingforthebranchmanagerandotheremployeesinbanking,managementsystemsandinterfaceprotocol;
•methodsandproceduresforthesaleofproductsandprovisionofservices;
•securityandcashlogisticcontrols;
•calculationofcompanyrevenueandpaymentofmanyoperatingandadministrativeexpenses
•theformulationandimplementationofadvertisingandpromotionalprograms;and
•salestechniquesandpropercustomerrelations.
The following is a summary of the material accounting policies adopted by the company in the preparation of the
financial statements. The accounting policies have been consistently applied, unless otherwise stated.
b) Revenue
Revenue is recognised when the amount of revenue can be reliably measured, it is probable that future economic
benefit will flow to the company and any specific criteria have been met. Interest and fee revenue is recognised
when earned. The gain or loss on disposal of property, plant and equipment is recognised on a net basis and is
classified as income rather than revenue. All revenue is stated net of the amount of Goods and Services Tax (GST).
Revenue calculation
The franchise agreement with Bendigo and Adelaide Bank Limited provides for three types of revenue earned by
the company. First, the company is entitled to 50% of the monthly gross margin earned by Bendigo and Adelaide
Bank Limited on products and services provided through the company that are regarded as “day to day” banking
business (ie ‘margin business’). This arrangement also means that if the gross margin reflects a loss (that is, the
gross margin is a negative amount), the company effectively incurs, and must bear, 50% of that loss.
Notes to the financial statements (continued)
Annual report Coolalinga & Districts Community Finance Limited16
Note 1. Summary of Significant Accounting Policies (continued)
b) Revenue (continued)
Revenue calculation (continued)
The second source of revenue is commission paid by Bendigo and Adelaide Bank Limited on the other products
and services provided through the company (i.e. ‘commission business’). The commission is currently payable
on various specified products and services, including insurance, financial planning, common fund, Sandhurst
Select, superannuation, commercial loan referrals, products referred by Rural Bank, leasing referrals, fixed loans
and certain term deposits (>90 days). The amount of commission payable can be varied in accordance with
the Franchise Agreement (which, in some cases, permits commissions to be varied at the discretion of Bendigo
and Adelaide Bank Limited). This discretion has been exercised on several occasions previously. For example in
February 2011 and February 2013 Bendigo and Adelaide Bank Limited reduced commissions on two core banking
products to ensure a more even distribution of income between Bendigo and Adelaide Bank Limited and its
Community Bank® partners. The revenue share model is subject to regular review to ensure that the interests of
Bendigo and Adelaide Bank Limited and Community Bank® companies remain balanced.
The third source of revenue is a proportion of the fees and charges (ie, what are commonly referred to as ‘bank
fees and charges’) charged to customers. This proportion, determined by Bendigo and Adelaide Bank Limited, may
vary between products and services and may be amended by Bendigo and Adelaide Bank Limited from time to
time.
c) Income Tax
Current tax
Current tax is calculated by reference to the amount of income taxes payable or recoverable in respect of the
taxable profit or loss for the period. It is calculated using tax rates and tax laws that have been enacted or
substantively enacted by reporting date. Current tax for current and prior periods is recognised as a liability (or
asset) to the extent that it is unpaid (or refundable).
Deferred tax
Deferred tax is accounted for using the balance sheet liability method on temporary differences arising from
differences between the carrying amount of assets and liabilities in the financial statements and the corresponding
tax base of those items.
In principle, deferred tax liabilities are recognised for all taxable temporary differences. Deferred tax assets
are recognised to the extent that it is probable that sufficient taxable amounts will be available against which
deductible temporary differences or unused tax losses and tax offsets can be utilised. However, deferred tax
assets and liabilities are not recognised if the temporary differences giving rise to them arise from the initial
recognition of assets and liabilities (other than as a result of a business combination) which affects neither
taxable income nor accounting profit. Furthermore, a deferred tax liability is not recognised in relation to taxable
temporary differences arising from goodwill.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period(s) when
the asset and liability giving rise to them are realised or settled, based on tax rates (and tax laws) that have been
enacted or substantively enacted by reporting date. The measurement of deferred tax liabilities reflects the tax
consequences that would follow from the manner in which the consolidated entity expects, at the reporting date, to
recover or settle the carrying amount of its assets and liabilities.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax and
when the balances relate to taxes levied by the same taxation authority and the company entity intends to settle
its tax assets and liabilities on a net basis.
Notes to the financial statements (continued)
Annual report Coolalinga & Districts Community Finance Limited 17
Note 1. Summary of Significant Accounting Policies (continued)
c) Income Tax (continued)
Current and deferred tax for the period
Current and deferred tax is recognised as an expense or income in the statement of comprehensive income,
except when it relates to items credited or debited to equity, in which case the deferred tax is also recognised
directly in equity, or where it arises from initial accounting for a business combination, in which case it is taken into
account in the determination of goodwill or excess.
d) Employee Entitlements
Provision is made for the company’s liability for employee benefits arising from services rendered by employees
to balance date. Employee benefits that are expected to be settled within one year have been measured at the
amounts expected to be paid when the liability is settled, plus related on-costs. Employee benefits payable later
than one year have been measured at the present value of the estimated future cash outflows to be made for
those benefits.
The company contributes to a defined contribution plan. Contributions to employee superannuation funds are
charged against income as incurred.
e) Cash and Cash Equivalents
For the purposes of the statement of cash flows, cash includes cash on hand and in banks and investments in
money market instruments, net of outstanding bank overdrafts. Bank overdrafts are shown within borrowings in
current liabilities on the balance sheet.
f) Trade Receivables and Payables
Receivables are carried at their amounts due. The collectability of debts is assessed at balance date and specific
provision is made for any doubtful accounts. Liabilities for trade creditors and other amounts are carried at cost
that is the fair value of the consideration to be paid in the future for goods and services received, whether or not
billed to the company.
g) Property, Plant and Equipment
Plant and equipment, leasehold improvements and equipment under finance lease are stated at cost less
accumulated depreciation and impairment. Cost includes expenditure that is directly attributable to the acquisition
of the item. In the event that settlement of all or part of the purchase consideration is deferred, cost is determined
by discounting the amounts payable in the future to their present value as at the date of acquisition.
Depreciation is provided on property, plant and equipment, including freehold buildings but excluding land.
Depreciation is calculated on a straight line basis so as to write off the net cost of each asset over its expected
useful life to its estimated residual value. Leasehold improvements are depreciated at the rate equivalent to
the available building allowance using the straight line method. The estimated useful lives, residual values and
depreciation method is reviewed at the end of each annual reporting period.
The following estimated useful lives are used in the calculation of depreciation:
- leasehold improvements 40 years
- plant and equipment 2.5 - 40 years
- furniture and fittings 4 - 40 years
Notes to the financial statements (continued)
Annual report Coolalinga & Districts Community Finance Limited18
Note 1. Summary of Significant Accounting Policies (continued)
h) Intangibles
The franchise fee paid to Bendigo and Adelaide Bank Limited has been recorded at cost and is amortised on a
straight line basis over the life of the franchise agreement.
i) Payment Terms
Receivables and payables are non interest bearing and generally have payment terms of between 30 and 90 days.
j) Borrowings
All loans are initially measured at the principal amount. Interest is recognised as an expense as it accrues.
k) Financial Instruments
Recognition and initial measurement
Financial instruments, incorporating financial assets and financial liabilities, are recognised when the entity
becomes a party to the contractual provisions of the instrument.
Financial instruments are initially measured at fair value plus transaction costs. Financial instruments are
classified and measured as set out below.
Derecognition
Financial assets are derecognised where the contractual rights to receipt of cash flows expires or the asset is
transferred to another party whereby the entity no longer has any significant continuing involvement in the risks
and benefits associated with the asset.
Classification and subsequent measurement
(i) Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not
quoted in an active market and are subsequently measured at amortised cost using the effective interest rate
method.
(ii) Held-to-maturity investments
Held-to-maturity investments are non-derivative financial assets that have fixed maturities and fixed or
determinable payments, and it is the entity’s intention to hold these investments to maturity. They are
subsequently measured at amortised cost using the effective interest rate method.
(iii) Financial liabilities
Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured at amortised cost
using the effective interest rate method.
Impairment
At each reporting date, the entity assesses whether there is objective evidence that a financial instrument has
been impaired. Impairment losses are recognised in the statement of comprehensive income.
Notes to the financial statements (continued)
Annual report Coolalinga & Districts Community Finance Limited 19
Note 1. Summary of Significant Accounting Policies (continued)
l) Leases
Leases of fixed assets where substantially all the risks and benefits incidental to the ownership of the asset,
but not the legal ownership are transferred to the company are classified as finance leases. Finance leases are
capitalised by recording an asset and a liability at the lower of the amounts equal to the fair value of the leased
property or the present value of the minimum lease payments, including any guaranteed residual values. Lease
payments are allocated between the reduction of the lease liability and the lease interest expense for the period.
Leased assets are depreciated on a straight-line basis over the shorter of their estimated useful lives or the lease
term. Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor,
are charged as expenses in the periods in which they are incurred. Lease incentives under operating leases are
recognised as a liability and amortised on a straight-line basis over the life of the lease term.
m) Provisions
Provisions are recognised when the economic entity has a legal, equitable or constructive obligation to make a
future sacrifice of economic benefits to other entities as a result of past transactions of other past events, it is
probable that a future sacrifice of economic benefits will be required and a reliable estimate can be made of the
amount of the obligation.
A provision for dividends is not recognised as a liability unless the dividends are declared, determined or publicly
recommended on or before the reporting date.
n) Contributed Equity
Ordinary shares are recognised at the fair value of the consideration received by the company. Any transaction
costs arising on the issue of ordinary shares are recognised directly in equity as a reduction of the share proceeds
received.
o) Earnings Per Share
Basic earnings per share is calculated by dividing the profit attributable to equity holders of the company, excluding
any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares
outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the year.
p) Goods and Services Tax
Revenues, expenses and assets are recognised net of the amount of Goods and Services Tax (GST), except where
the amount of GST incurred is not recoverable from the taxation authority. In these circumstances, the GST is
recognised as part of the cost of acquisition of the asset or as part of the expense.
Receivables and payables are stated with the amount of GST included. The net amount of GST recoverable from,
or payable to, the taxation authority is included as part of receivables or payables in the balance sheet. Cash flows
are included in the statement of cash flows on a gross basis.
The GST components of cash flows arising from investing and financing activities which are recoverable from, or
payable to, the taxation authority are classified as operating cash flows.
Notes to the financial statements (continued)
Annual report Coolalinga & Districts Community Finance Limited20
Note 2. Financial Risk ManagementThe company’s activities expose it to a limited variety of financial risks: market risk (including currency risk, fair
value interest risk and price risk), credit risk, liquidity risk and cash flow interest rate risk. The company’s overall
risk management program focuses on the unpredictability of financial markets and seeks to minimise potential
adverse effects on the financial performance of the entity. The entity does not use derivative instruments.
Risk management is carried out directly by the board of directors.
(i) Market risk
The company has no exposure to any transactions denominated in a currency other than Australian dollars.
(ii) Price risk
The company is not exposed to equity securities price risk as it does not hold investments for sale or at fair value.
The company is not exposed to commodity price risk.
(iii) Credit risk
The company has no significant concentrations of credit risk. It has policies in place to ensure that customers
have an appropriate credit history. The company’s franchise agreement limits the company’s credit exposure to one
financial institution, being Bendigo and Adelaide Bank Limited.
(iv) Liquidity risk
Prudent liquidity management implies maintaining sufficient cash and marketable securities and the availability
of funding from credit facilities. The company believes that its sound relationship with Bendigo and Adelaide Bank
Limited mitigates this risk significantly.
(v) Cash flow and fair value interest rate risk
Interest-bearing assets are held with Bendigo and Adelaide Bank Limited and subject to movements in market
interest. Interest-rate risk could also arise from long-term borrowings. Borrowings issued at variable rates expose
the company to cash flow interest-rate risk. The company believes that its sound relationship with Bendigo and
Adelaide Bank Limited mitigates this risk significantly.
(vi) Capital management
The board’s policy is to maintain a strong capital base so as to sustain future development of the company. The
board of directors monitor the return on capital and the level of dividends to shareholders. Capital is represented
by total equity as recorded in the balance sheet.
In accordance with the franchise agreement, in any 12 month period, the funds distributed to shareholders shall
not exceed the distribution limit.
(i) the distribution limit is the greater of:
(a) 20% of the profit or funds of the franchisee otherwise available for distribution to shareholders in that 12
month period; and
(b) subject to the availability of distributable profits, the relevant rate of return multiplied by the average level of
share capital of the franchisee over that 12 month period; and
(ii) the relevant rate of return is equal to the weighted average interest rate on 90 day bank bills over that 12
month period plus 5%.
Notes to the financial statements (continued)
Annual report Coolalinga & Districts Community Finance Limited 21
Note 2. Financial Risk Management (continued)
(vi) Capital management (continued)
The board is managing the growth of the business in line with this requirement. There are no other externally
imposed capital requirements, although the nature of the company is such that amounts will be paid in the form
of charitable donations and sponsorship. Charitable donations and sponsorship paid for the year ended 30 June
2013 can be seen in the statement of comprehensive income.
There were no changes in the company’s approach to capital management during the year.
Note 3. Critical Accounting Estimates and JudgementsEstimates and judgements are continually evaluated and are based on historical experience and other factors,
including expectations of future events that may have a financial impact on the entity and that are believed to be
reasonable under the circumstances.
The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by
definition, seldom equal the related actual results.
Management has identified the following critical accounting policies for which significant judgements, estimates
and assumptions are made. Actual results may differ from these estimates under different assumptions and
conditions and may materially affect financial results or the financial position reported in future periods.
Further details of the nature of these assumptions and conditions may be found in the relevant notes to the
financial statements.
Taxation
Judgement is required in assessing whether deferred tax assets and certain tax liabilities are recognised on
the balance sheet. Deferred tax assets, including those arising from un-recouped tax losses, capital losses and
temporary differences, are recognised only where it is considered more likely than not that they will be recovered,
which is dependent on the generation of sufficient future taxable profits.
Assumptions about the generation of future taxable profits depend on management’s estimates of future cash
flows. These depend on estimates of future sales volumes, operating costs, capital expenditure, dividends and
other capital management transactions. Judgements are also required about the application of income tax
legislation.
These judgements and assumptions are subject to risk and uncertainty, hence there is a possibility that changes
in circumstances will alter expectations, which may impact the amount of deferred tax assets and deferred tax
liabilities recognised on the balance sheet and the amount of other tax losses and temporary differences not yet
recognised. In such circumstances, some or all of the carrying amount of recognised deferred tax assets and
liabilities may require adjustment, resulting in corresponding credit or charge to the statement of comprehensive
income.
Estimation of useful lives of assets
The estimation of the useful lives of assets has been based on historical experience and the condition of the
asset is assessed at least once per year and considered against the remaining useful life. Adjustments to useful
lives are made when considered necessary.
Notes to the financial statements (continued)
Annual report Coolalinga & Districts Community Finance Limited22
Note 3. Critical Accounting Estimates and Judgements (continued)
Goodwill
Goodwill represents the excess of the cost of an acquisition over the fair value of the company’s share of the net
identifiable assets of the acquired branch/agency at the date of acquisition. Goodwill on acquisition is included in
intangible assets. Goodwill is not amortised. Instead, goodwill is tested for impairment annually, or more frequently
if events or changes in circumstances indicate that it might be impaired, and is carried at cost less accumulated
impairment losses.
The calculations require the use of assumptions.
Impairment of assets
At each reporting date, the company reviews the carrying amounts of its tangible and intangible assets that have
an indefinite useful life to determine whether there is any indication that those assets have suffered an impairment
loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the
extent of the impairment loss (if any). Where the asset does not generate cash flows that are independent from
other assets, the consolidated entity estimates the recoverable amount of the cash-generating unit to which the
asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the
estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current
market assessments of the time value of money and the risks specific to the asset for which the estimates of
future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount,
the carrying amount of the asset (cash-generating unit) is reduced to its recoverable amount. An impairment loss
is recognised in profit or loss immediately, unless the relevant asset is carried at fair value, in which case the
impairment loss is treated as a revaluation decrease.
Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-generating unit) is
increased to the revised estimate of its recoverable amount, but only to the extent that the increased carrying
amount does not exceed the carrying amount that would have been determined had no impairment loss been
recognised for the asset (cash-generating unit) in prior years. A reversal of an impairment loss is recognised
in profit or loss immediately, unless the relevant asset is carried at fair value, in which case the reversal of the
impairment loss is treated as a revaluation increase.
2013 2012 $ $
Note 4. Revenue from Ordinary ActivitiesOperating activities:
- services commissions 1,017,648 970,466
- other revenue - 435
Total revenue from operating activities 1,017,648 970,901
Notes to the financial statements (continued)
Annual report Coolalinga & Districts Community Finance Limited 23
Note 4. Revenue from Ordinary Activities (continued)
Non-operating activities:
- interest received 16,093 10,562
- profit on disposal of motor vehicle - 1,112
Total revenue from non-operating activities 16,093 11,674
Total revenues from ordinary activities 1,033,741 982,575
Note 5. ExpensesDepreciation of non-current assets:
- plant and equipment 7,705 6,443
- leasehold improvements 5,974 6,253
- Motor Vehicle 3,749 3,495
Amortisation of non-current assets:
- franchise agreement 2,310 2,163
- franchise renewal fee 11,554 8,665
31,292 27,019
Finance costs:
- interest paid 1,294 1,181
Note 6. Income Tax Expense/CreditThe components of tax expense comprise:
- Current tax 12,043 -
- Movement in deferred tax 3,247 (4,090)
- Recoup of prior year tax loss 16,704 75,285
31,994 71,195
The prima facie tax on profit from ordinary activities before income
tax is reconciled to the income tax expense as follows:
Operating profit 106,646 240,180
Prima facie tax on profit from ordinary activities at 30% 31,993 72,054
Add tax effect of:
- non-deductible expenses - 131
- timing difference expenses (3,247) 3,100
- other deductible expenses - -
28,746 75,285
Notes to the financial statements (continued)
2013 2012 $ $
Annual report Coolalinga & Districts Community Finance Limited24
Note 6. Income Tax Expense/Credit (continued)
Movement in deferred tax 3,247 (4,090)
31,993 71,195
Note 7. Cash and Cash EquivalentsCash at bank and on hand 110,616 120,090
Term deposits 251,956 267,695
362,572 387,785
The above figures are reconciled to cash at the end of the financial
year as shown in the statement of cashflows as follows:
Note 7.(a) Reconciliation of cash
Cash at bank and on hand 110,616 120,090
Term deposits 251,956 267,695
362,572 387,785
Note 8. Trade and Other ReceivablesTrade receivables 85,018 70,272
Other receivables and accruals 731 922
Prepayments 1,520 6,187
87,269 77,381
Note 9. Property, Plant and EquipmentPlant and equipment
At cost 77,401 69,761
Less accumulated depreciation (44,758) (37,053)
32,643 32,708
Leasehold improvements
At cost 161,291 161,291
Less accumulated depreciation (42,057) (36,083)
119,234 125,208
Notes to the financial statements (continued)
2013 2012 $ $
Annual report Coolalinga & Districts Community Finance Limited 25
Note 9. Property, Plant and Equipment (continued)
Motor Vehicle
At cost 29,991 29,991
Less accumulated depreciation (5,310) (1,561)
24,681 28,430
Total written down amount 176,558 186,346
Movements in carrying amounts:
Plant and equipment
Carrying amount at beginning 32,708 32,065
Additions 7,640 7,086
Disposals - -
Less: depreciation expense (7,705) (6,443)
Carrying amount at end 32,643 32,708
Leasehold improvements
Carrying amount at beginning 125,208 131,461
Additions - -
Disposals - -
Less: depreciation expense (5,974) (6,253)
Carrying amount at end 119,234 125,208
Motor Vehicle
Carrying amount at beginning 28,430 8,095
Additions - 31,103
Disposals - (7,273)
Less: depreciation expense (3,749) (3,495)
Carrying amount at end 24,681 28,430
Total written down amount 176,558 186,346
Note 10. Intangible AssetsFranchise fee
At cost 21,554 21,554
Less: accumulated amortisation (14,043) (11,733)
7,511 9,821
Notes to the financial statements (continued)
2013 2012 $ $
Annual report Coolalinga & Districts Community Finance Limited26
Note 10. Intangible Assets (continued)
Renewal processing fee
At cost 57,768 57,768
Less: accumulated amortisation (20,220) (8,665)
37,548 49,103
Total written down amount 45,059 58,924
Note 11. TaxCurrent:
Income tax payable 34,526 -
Non-Current:
Deferred tax assets
- accruals 735 990
- employee provisions 10,295 14,744
- tax losses carried forward - 16,704
11,030 32,438
Deferred tax liability
- accruals (219) 277
- deductible prepayments (456) 1,856
(675) 2,133
Net deferred tax asset 10,355 30,305
Movement in deferred tax charged to statement of comprehensive income 19,950 71,195
Note 12. Trade and Other PayablesTrade creditors 10,547 25,130
Other creditors and accruals 2,450 3,300
12,997 28,430
Notes to the financial statements (continued)
2013 2012 $ $
Annual report Coolalinga & Districts Community Finance Limited 27
Note 13. BorrowingsCurrent:
Chattel mortgage - Bus - 1,941
Chattel mortgage - Yaris 8,493 -
Chattel mortgage - Mazda - 7,982
8,493 9,923
Non-Current:
Chattel mortgage - Yaris 5,205 13,693
5,205 13,693
Note 14. ProvisionsCurrent:
Provision for annual leave 19,940 15,888
Non-Current:
Provision for long service leave 14,376 32,131
Note 15. Contributed Equity800,011 Ordinary shares fully paid (2012: 800,011) 800,011 800,011
Less: equity raising expenses (34,461) (34,461)
765,550 765,550
Rights attached to shares
(a) Voting rights
Subject to some limited exceptions, each member has the right to vote at a general meeting.
On a show of hands or a poll, each member attending the meeting (whether they are attending the meeting
in person or by attorney, corporate representative or proxy) has one vote, regardless of the number of shares
held. However, where a person attends a meeting in person and is entitled to vote in more than one capacity
(for example, the person is a member and has also been appointed as proxy for another member) that person
may only exercise one vote on a show of hands. On a poll, that person may exercise one vote as a member and
one vote for each other member that person represents as duly appointed attorney, corporate representative or
proxy.
The purpose of giving each member only one vote, regardless of the number of shares held, is to reflect the
nature of the company as a community based company, by providing that all members of the community who
have contributed to the establishment and ongoing operation of the Community Bank® branch have the same
ability to influence the operation of the company.
Notes to the financial statements (continued)
2013 2012 $ $
Annual report Coolalinga & Districts Community Finance Limited28
Note 15. Contributed Equity (continued)
Rights attached to shares (continued)
(b) Dividends
Generally, dividends are payable to members in proportion to the amount of the share capital paid up on the
shares held by them, subject to any special rights and restrictions for the time being attaching to shares. The
franchise agreement with Bendigo and Adelaide Bank Limited contains a limit on the level of profits or funds
that may be distributed to shareholders. There is also a restriction on the payment of dividends to certain
shareholders if they have a prohibited shareholding interest (see below).
(c) Transfer
Generally, ordinary shares are freely transferable. However, the directors have a discretion to refuse to register
a transfer of shares.
Subject to the foregoing, shareholders may transfer shares by a proper transfer effected in accordance with the
company’s constitution and the Corporations Act.
Prohibited shareholding interest
A person must not have a prohibited shareholding interest in the company.
In summary, a person has a prohibited shareholding interest if any of the following applies:
• Theycontrolorown10%ormoreofthesharesinthecompany(the“10%limit”).
• Intheopinionoftheboardtheydonothaveacloseconnectiontothecommunityorcommunitiesinwhichthe
company predominantly carries on business (the “close connection test”).
• Wherethepersonisashareholder,afterthetransferofsharesinthecompanytothatpersonthenumberof
shareholders in the company is (or would be) lower than the base number (the “base number test”). The base
number is 330. As at the date of this report, the company had 381 shareholders.
As with voting rights, the purpose of this prohibited shareholding provision is to reflect the community-based nature
of the company.
Where a person has a prohibited shareholding interest, the voting and dividend rights attaching to the shares in
which the person (and his or her associates) have a prohibited shareholding interest, are suspended.
The board has the power to request information from a person who has (or is suspected by the board of having)
a legal or beneficial interest in any shares in the company or any voting power in the company, for the purpose of
determining whether a person has a prohibited shareholding interest. If the board becomes aware that a member
has a prohibited shareholding interest, it must serve a notice requiring the member (or the member’s associate) to
dispose of the number of shares the board considers necessary to remedy the breach. If a person fails to comply
with such a notice within a specified period (that must be between three and six months), the board is authorised
to sell the specified shares on behalf of that person. The holder will be entitled to the consideration from the sale
of the shares, less any expenses incurred by the board in selling or otherwise dealing with those shares.
In the constitution, members acknowledge and recognise that the exercise of the powers given to the board may
cause considerable disadvantage to individual members, but that such a result may be necessary to enforce the
prohibition.
Notes to the financial statements (continued)
Annual report Coolalinga & Districts Community Finance Limited 29
Note 16. Accumulated LossesBalance at the beginning of the financial year (124,874) (253,859)
Net profit from ordinary activities after income tax 74,653 168,985
Dividends paid or provided for (60,001) (40,000)
Balance at the end of the financial year (110,222) (124,874)
Note 17. Statement of CashflowsReconciliation of profit from ordinary activities after tax to net cash
provided by operating activities
Profit from ordinary activities after income tax 74,653 168,985
Non cash items:
- depreciation 17,428 16,191
- amortisation 13,864 10,828
Profit on disposal of motor vehicle - (1,112)
Changes in assets and liabilities:
- increase in receivables (9,888) (6,173)
- (increase)/decrease in other assets (14,576) 71,195
- increase/(decrease) in payables (15,433) 5,157
- increase/(decrease) in provisions (13,703) 11,578
Net cashflows provided by operating activities 52,345 276,649
Note 18. LeasesOperating lease commitments
Non-cancellable operating leases contracted for but not capitalised in the
financial statements
Payable - minimum lease payments
- not later than 12 months 33,519 33,519
- between 12 months and 5 years 72,625 106,144
- greater than 5 years - -
106,144 139,663
The property lease is a non-cancellable lease with a five-year term, with rent payable monthly in advance. The lease
was renewed on 17 September 2011 for a further 5 years with one 5 year extension option remaining.
Notes to the financial statements (continued)
2013 2012 $ $
Annual report Coolalinga & Districts Community Finance Limited30
Note 18. Leases (continued)
Finance lease commitments
Payable - minimum lease payments
- not later than 12 months 9,109 11,086
- between 12 months and 5 years 5,314 14,423
- greater than 5 years - -
Minimum lease payments 14,423 25,509
Less future finance charges (725) (1,893)
Present value of minimum lease payments 13,698 23,616
The Finance Lease for the Toyota Yaris is repayable monthly with the final
instalment due on 24 January 2015. Interest is recognised at an average rate
of 6.25%.
Note 19. Auditor’s RemunerationAmounts received or due and receivable by the auditor of the company for:
- audit and review services 4,700 4,500
- share registry services 2,752 1,450
- non audit services 3,130 3,193
10,582 9,143
Note 20. Director and Related Party DisclosuresThe names of directors who have held office during the financial year are:
Janice Susan Young
Leanne Dix
Karen Lee Relph
Stuart Dean Hand
Deane Henry Walkley
Rodney Edmond Nelson
Robert Hew Macleod (Appointed 5 September 2012)
Keely Ann Quinn (Appointed 5 September 2012)
Deane Walkley provides repair and maintenance of electrical fittings for the company. The total payments for 2013
were $1,500 (2012: $250).
Janice Young provided Consultants Fees (Chairs, Marketing, HR & Governance) to the value of $4,200 (2012:
$Nil).
Karen Relph provided Consultants Fees (Marketing & Treasurer) to the value of $2,450 (2012: $Nil).
Notes to the financial statements (continued)
2013 2012 $ $
Annual report Coolalinga & Districts Community Finance Limited 31
Note 20. Director and Related Party Disclosures (continued)
Leanne Dix provides secretarial services to the company. The total payments for 2013 were $1,820 (2012:
$3,328)
No other director or related entity has entered into a material contract with the company.
Directors Shareholdings 2013 2012
Janice Susan Young 7,201 7,201
Leanne Dix - -
Karen Lee Relph 1,101 1,101
Stuart Dean Hand - -
Deane Henry Walkley 600 600
Rodney Edmond Nelson - -
Robert Hew Macleod (Appointed 5 September 2012) 20,000 20,000
Keely Ann Quinn (Appointed 5 September 2012) 1,000 1,000
2013 2012 $ $
Note 21. Dividends Paid or ProvidedDividends paid during the year
Unfranked dividend - 7.5 cents (2012: 5 cents) per share 60,001 40,000
Note 22. Earnings Per Share(a) Profit attributable to the ordinary equity holders of the company
used in calculating earnings per share 74,653 168,985
Number Number
(b) Weighted average number of ordinary shares used as the
denominator in calculating basic earnings per share 800,011 800,011
Note 23. Events Occurring After the Balance Sheet DateThere have been no events after the end of the financial year that would materially affect the financial statements.
Note 24. Contingent LiabilitiesThere were no contingent liabilities at the date of this report to affect the financial statements.
Notes to the financial statements (continued)
Annual report Coolalinga & Districts Community Finance Limited32
Note 25. Segment ReportingThe economic entity operates in the service sector where it facilitates Community Bank® services in Coolalinga
and the surrounding districts in the Northern Territory pursuant to a franchise agreement with Bendigo and
Adelaide Bank Limited.
Note 26. Registered Office/Principal Place of BusinessThe entity is a company limited by shares, incorporated and domiciled in Australia. The registered office and
principal place of business is:
Registered Office Principal Place of Business
Shop 18, 460 Stuart Highway Shop 18, 460 Stuart Highway
Coolalinga NT 0835 Coolalinga NT 0835
Note 27. Financial Instruments
Net Fair Values
The net fair values of financial assets and liabilities approximate the carrying values as disclosed in the balance
sheet. The company does not have any unrecognised financial instruments at the year end.
Credit Risk
The maximum exposure to credit risk at balance date to recognised financial assets is the carrying amount of
those assets as disclosed in the balance sheet and notes to the financial statements.
There are no material credit risk exposures to any single debtor or group of debtors under financial instruments
entered into by the economic entity.
Interest Rate Risk
Financial instrument
Floating interest rate
Fixed interest rate maturing inNon interest
bearing
Weighted average effective
interest rate1 year or less Over 1 to 5 years Over 5 years
2013$
2012$
2013$
2012$
2013$
2012$
2013$
2012$
2013$
2012$
2013%
2012%
Financial Assets
Cash and cash equivalents
110,416 119,890 251,956 267,695 - - - - 200 200 5.80 3.81
Receivables - - - - - - - - 87,269 77,381 N/A N/A
Financial Liabilities
Interest bearing liabilities
- - 8,493 9,923 5,205 13,693 - - - - 8.31 8.42
Payables - - - - - - - - 12,997 27,304 N/A N/A
Notes to the financial statements (continued)
Annual report Coolalinga & Districts Community Finance Limited 33
In accordance with a resolution of the directors of Coolalinga & Districts Community Finance Limited, we state that:
In the opinion of the directors:
(a) the financial statements and notes of the company are in accordance with the Corporations Act 2001,
including:
(i) giving a true and fair view of the company’s financial position as at 30 June 2013 and of its performance
for the financial year ended on that date; and
(ii) complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional
reporting requirements; and
(b) there are reasonable grounds to believe that the company will be able to pay its debts as and when they
become due and payable.
(c) the audited remuneration disclosures set out in the remuneration report section of the directors’ report comply
with Accounting Standard AASB124 Related Party Disclosures and the Corporations Regulations 2001.
This declaration is made in accordance with a resolution of the board of directors.
Leanne Dix,
Secretary
Signed on the 30th of September 2013.
Directors’ declaration
Annual report Coolalinga & Districts Community Finance Limited34
Independent audit report
Annual report Coolalinga & Districts Community Finance Limited 35
Independent audit report (continued)
Annual report Coolalinga & Districts Community Finance Limited36
Coolalinga & Districts Community Bank® Branch Shop 18, 460 Stuart Highway, Coolalinga NT 0835 Phone: (08) 8983 4111 Fax: (08) 8983 3482
Franchisee: Coolalinga & Districts Community Finance Limited 18/460 Stuart Highway, Coolalinga NT 0835Phone: (08) 8983 4111 ABN: 24 117 500 455 www.bendigobank.com.au/coolalinga
Share Registry: AFS & Associates Pty Ltd 61-65 Bull Street, Bendigo VIC 3550PO Box 454, Bendigo VIC 3552Phone: (03) 5443 0344 Fax: (03) 5443 5304Email: [email protected] www.afsbendigo.com.au
(BMPAR13138) (10/13)
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